US Property‑Casualty Insurers Record Best Underwriting Profit in a Decade

U.S. property and casualty insurers are poised to post their strongest underwriting results through 2028, driven by moderating claims costs and stable economic conditions. A joint report from the Insurance Information Institute and Milliman projects underwriting income of $61.2 billion in 2025, with a combined ratio of 93 – the best in a decade. Personal lines, especially homeowners and private‑passenger auto, contributed the bulk of the gains, benefitting from technology‑enabled pricing and rate momentum.

Commercial insurers also saw improvements, with net underwriting income rising to $19.2 billion in 2025, though lines such as commercial auto and certain liability segments continued to face loss pressures. Analysts highlighted lingering risks from catastrophe exposure, liability claims, and geopolitical uncertainty, noting that AI‑driven products and emerging class‑action litigation could create new challenges ahead.